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[September 2001]
Hanson Interim Results
Profits for Hanson PLC - before tax and exceptional items - for the six
months to 30 June 2001 were 129.2 million (131.9 million) on turnover
totalling 2,041.8 million (1,380.9 million). Including exceptional items,
the profit before tax was 235.6 million (126.3 million).With overall trading slightly ahead of initial expectations, the group
remains confident that 2001 should be a year of progress.HBMA, which is expected to account for over 60% of trading profit this year,
has had an encouraging start to the construction season. Its largest
market, Texas, has performed well. Concrete and cement price increases
there are currently being implemented.The outlook for HQPE remains good, although significant benefits from the
Government's Ten Year Transport Plan are not expected to materialise before
the end of this year. Progress has been made in reducing costs in Germany
and Israel, which should help offset difficult trading conditions in these
markets.Hanson Bricks Europe (HBE) is expecting some uplift in the level of UK brick
demand in the remainder of the year. The impact of UK fuel cost increases
is budgeted to reduce in the second half, as are some of the first half's
raw material-related production issues. The Government's review of the
planning process should improve the supply of land for new houses, but is
unlikely to benefit the short term.In Australia, there are some signs of stability in the construction market.
Recent news on housing permits suggests the potential for volume improvement
around the end of the year. However, pricing pressure is likely to continue
in the interim and the forthcoming federal election may temporarily slow
down the flow of public infrastructure projects.Economic growth expectations in Hanson Pacific's major markets are currently
being revised downwards by market commentators. This may impact future
performance depending on the extent to which government spending is directed
towards stimulating growth. For the time being, however, internal forecasts
remain unchanged.
ENDS